Auditing the Auditors- ICAI and IGLF tussle

=== Auditing the Auditors ===

The case was referred to the disciplinary committee of the Institute of Chartered Accountants of India. It was referred in the matter involving auditors of National Spot Exchange Ltd on a complaint following the Rs 5,600 crore payment crisis at NSEL.

The director (discipline) of the Institute of Chartered Accountants of India (ICAI) has formed a prima-facie opinion, finding the auditor of the National Spot Exchange (NSEL) guilty of professional misconduct.

The matter has now been taken up by the institute’s disciplinary committee and an enquiry is scheduled next month.

CHRONOLOGICAL EVENTS:

Jul 2013: NSEL crisis breaks out

Aug-Sept 2013: Complaints, including one by IGL Finance, filed with ICAI against Mukesh P Shah & Co, auditor of NSEL

Dec 22, 2014: IGLF files an RTI application, seeking detailed progress report

Jan 22, 2015: ICAI responds saying no fixed timeline for such probes

Apr-May: As further reminders turned futile, IGLF moves Delhi high court; ICAI gives assurance of decision in four weeks

Aug: ICAI says prima facie opinion formed, but refuses to disclose details

Oct: Disciplinary panel agrees with prima facie opinion of director (discipline)

Nov: IGL Finance moves contempt petition; ICAI discloses prima facie opinion and other details

Dec: Enquiry scheduled by disciplinary committee of ICAI

[As reported in Business Standard]